Following the unanimous passage of the cannabis cultivation bill in Gandaki Province on Thursday, experts have noted that a legal pathway is now open for the commercial cultivation of cannabis for medicinal and industrial purposes.
After the bill’s enactment, it will be possible to register companies with government bodies to obtain permission for cannabis cultivation. Officials have indicated that the related fees and procedures will be detailed in upcoming regulations.
Though Gandaki is the first province to legislate on cannabis cultivation, experts highlight that federal laws present obstacles to implementation.
Province Minister for Industry and Tourism, Yashoda Rimal, stated that the procedural framework will prioritise farmers.
What Does the Bill Include?
Considering Gandaki Province’s geographical features, fertile land, crop suitability, and commercial potential, the provincial assembly has adopted the bill to authorize structured cannabis cultivation within available land for medicinal and industrial purposes, aiming to boost employment and income.
Relevant authorities will be responsible for identifying and defining the districts and local-level areas suitable for cannabis cultivation.
Individuals, firms, or institutions with provincial government authorization may cultivate approved cannabis species only within designated areas as specified.
The bill mandates that cannabis products purchased for medicinal or industrial purposes must only be used for those authorized purposes.
The province government will publish notices in the gazette to designate specific districts or local bodies as cultivation zones.
There is provision to prohibit cultivation of cannabis varieties harmful to human health.
Applicants wishing to cultivate cannabis must submit details of their own land or leased land for at least five years within designated areas, a recommendation from the local government, and a purchase agreement with the medical or production industry to the regulatory unit.
Only after infrastructure requirements are met will the regulatory unit conduct on-site inspections and assess industrial capacity before issuing the final permit.
Image Source, AP
How Will Misuse Be Prevented?
The bill includes regulatory measures to prevent misuse and establish orderly cannabis cultivation.
A high-level steering committee chaired by the Chief Minister will include ministers of agriculture, health, industry, forestry, the chief secretary, and the provincial police chief.
The ministry will establish a regulation and management unit for cannabis cultivation headed by officers at the ninth or tenth administrative level.
The parliamentary committee has limited the director’s unilateral powers and assigned institutional responsibility to the regulatory unit at multiple points.
At the ward level, a monitoring committee led by the ward chairperson with police representatives, local agricultural section heads, farmer representatives, and ward secretaries will conduct field supervision.
Special attention has been given to controlling the THC content in cannabis as outlined in the bill.
THC levels in cannabis grown for industrial purposes will be strictly regulated.
The maximum allowable THC content for industrial cannabis cultivation is set at 0.3 percent.
Before harvesting, storage, use, or sale, mandatory chemical testing for THC content must be conducted in a laboratory. The provincial government will establish such a laboratory.
Industrial purposes exclude cannabis products like buds and resin that are used as narcotics, focusing instead on raw materials used in other industries.
Cannabis buds used as ingredients in food products, such as in hashish, pickles, and chutneys, are also defined and categorized amongst industrial raw materials under the bill.
Penalties and Enforcement
Unauthorized cultivation or violations of specified conditions will result in penalties under the bill.
Cultivation without permission, cultivation beyond designated areas, or selling cannabis in violation of permission will be subject to actions and punishments per the federal Narcotic Drugs Act, 2033 (1976).
Failure to maintain required records, delays in submission, or unauthorized transportation can incur fines ranging from NPR 50,000 to NPR 500,000 based on inspector reports.
The bill also addresses social risks associated with the commercial openness of cannabis cultivation.
The provincial government is mandated to establish medical services and rehabilitation centers for narcotics and cannabis addiction treatment and recovery.
Despite legalization, social activists caution that without effective regulation and strict oversight, misuse could increase.
While legalization is welcomed for medicinal and industrial use, civil society is urged to remain vigilant to the risks of misuse.
Effective regulation, stringent monitoring, market management, and prevention of misuse require alertness from the provincial government and stakeholders.
Challenges in Implementation
Experts emphasize that despite the unanimous approval of the cannabis cultivation bill in Gandaki Province, federal laws present significant barriers to effective enforcement.
The Federal Narcotics Control and Punishment Act, 2033, prohibits cannabis production and usage.
Advocate Kapilmani Dahal notes that even though the province has enacted a law superseding the federal law, implementation challenges remain.
“Not only federal laws but Nepal’s commitments to international treaties also create hurdles for the provincial cannabis cultivation bill’s execution,” he stated.
In March 1961, the United Nations adopted the Single Convention on Narcotic Drugs, 1961, an international treaty that Nepal has signed.
According to Dahal, Nepal introduced narcotics control laws in 1976 following this treaty, which classified cannabis as a narcotic and banned it.
These federal laws and international treaty obligations complicate the province’s efforts to implement the bill.
Cannabis cultivation was openly practiced in Nepal until 1961, providing income for farmers.
However, with the enactment of the narcotics law in 1976, cultivation and use were prohibited.
Dahal argues that this legal shift disrupted the production of at least 22 types of Ayurvedic medicines derived from cannabis.
